Young Adults and High Earners Have Greatest Risk for Identity Theft, Including Loudoun County Residents
According to Javelin Strategy & Research, which recently released its 2007 Identity Fraud Survey Report, young people and those earning more than $150,000 are the most likely victims of identity theft. Even in Loudoun & Fairfax counties, insurance claims are common for this kind of theft.
Young adults between the ages of 18 and 24 are at the greatest risk for identity fraud because they are the least likely to take safeguards such as shredding documents and using anti-virus software and firewalls. Over five percent of those surveyed in this age group reported having been victimized.
Of those who responded, more than seven percent with annual incomes above $150,000 said that they had been victims of identity theft. The researchers also found that this group is twice as likely to not use paper statements and bills. Instead, they opt for electronic bills, which is a method of preventing fraud. They are also 65 percent more likely to monitor their accounts online, which allows them to spot a fraudulent event before large amounts of money are lost.
The survey also revealed that Americans earning less than $15,000 are the least likely to be victims of identity fraud. Only 2.8 percent of those polled reported being victims. Here in Loudoun county areas of South Riding, Brambleton, Aldie, Arcola, Stone Ridge, Ashburn and Sterling, this would not be a relevant issue! However, this group takes the longest to discover fraud when it happens. It takes them on average 70 percent more time for them to detect a fraud than it does for higher income populations. These victims spent an average of 44 hours resolving the fraud. Lower income victims are also more than twice as likely to cut their overall spending, nearly three times more likely to not purchase merchandise online, and three times more likely to refuse to bank online.
Research showed that 500,000 fewer adults in the United States were victims of identity fraud in 2006 than in 2005. Only 3.7 percent of adults were victims in 2006, as compared to 4 percent in 2005. This is a continuation of the annual decrease in this type of crime that has been occurring since data was first collected in 2003. In that year, 4.7 percent of the adult population was victimized.
There has also been a significant reduction in the incidents of new account fraud reported in the past 12 months. This fraud happens when criminals use a victim's personal data to establish a new account. Such fraud dropped from 1.5 percent in 2006 to one percent in 2007. Additionally, when fraudulent accounts were opened, many victims caught it quicker because of the ability to view statements online. The average fraud amounts dropped from more than $10,000 in 2006 to $7,260 in 2007. Survey respondents said that resolution times had also improved significantly. It took 25 hours to resolve a fraudulent event in 2006, as compared with only 5 hours in 2007.
Labels: Loudoun Insurance
Loudoun Homeowners Insurance - Keep Track of What You Own with a Home Inventory
If you suddenly experienced a catastrophic incident where all of your possessions were destroyed, would you be able to remember everything you've accumulated over the years? Like most people, your answer is probably “no.” That’s why having an up-to-date home inventory is so important. It can help you settle your insurance claim faster, because it represents an accurate and immediate accounting of what you lost. A home inventory can also be used to determine if you have enough insurance to replace the items you own, as well as verify losses for your income tax return.
To help you create an accurate home inventory, the Ohio Insurance Institute offers the following guidelines:
· Use your wedding registries to document new possessions if you have just been married.
· Update your inventory regularly, adding new items when you buy them. Be sure to keep receipts and take photos.
· Take close-up shots of expensive items such as jewelry, fine art, stamp collections, china, furs, antiques and silver. Items, like artwork, antiques and collectibles may increase in value over time. They may require appraisals for authentication and value.
· Don’t forget to inventory the contents of closets, drawers, the basement, the garage and outbuildings.
· Include toys and CDs in your inventory.
· Copy the inventory onto a disk/CD and store it off-premises in a safety deposit box or at a friend or relative’s house.
· Be sure to delete items from your inventory when they are no longer in your possession.
· Update your inventory every few years, when you move, or when you make a major home improvement.
Home inventory software is available that allows you to add digital photographs of your items. If you only own a film camera, you can scan print photographs or have the film developer save the images to a disk. The software also allows you to scan in copies of your receipts.
Another way to create an inventory is with a video camera. Walk through your house or apartment videotaping the contents and describing the items as you go, including information like the make and model of home electronics and appliances, or the type of upholstery fabric used for expensive furniture. After a recent fire in the South Riding neighborhood of Loudoun County, the homeowner was able to produce such a video tape. You can do the same task using a tape recorder; however, be sure to have detailed photographs that serve as a backup to the verbal descriptions.
A third way to create a home inventory is to use a personal finance software package. These often include a homeowners room-by-room inventory program. In the tech-savvy neighborhoods of Loudoun County (South Riding, Brambleton, Ashburn, Sterling, Aldie, Arcola & Leesburg) and Fairfax County (Chantilly, Fairfax, Centreville, Clifton, Herndon and so forth), such softwares can often be searched on the web, and found at no cost.
Labels: Loudoun Insurance
Securing Homeowner’s Insurance Should Be a Priority for Loudoun and Fairfax Home Buyers
Your loan package has been approved, your closing date is just days away, everything you own has been packed, and all that remains is a quick call to your insurance agent to line up a homeowner’s policy. That’s when the nightmare starts.
Your agent informs you that your new home is uninsurable due to a history of insurance claims filed by the previous owner. Even though in Loudoun County areas of South Riding, Ashburn, Brambleton, and Stone Ridge, newer homes are typically found, we do have areas such as Leesburg, Sterling, Aldie and Arcola where older properties may pose this threat. In FAirfax County, similar situation arises; Chantilly, Fairfax, Springfield and Clifton, may have older properties, whereas Centreville & Reston may not. Despite home inspections and various required real estate disclosures, this could happen to you.
Obtaining Loudoun or Fairfax homeowner’s insurance used to be one of the last tasks a buyer performed before closing; now it should be one of the first.
Insurers always check a property’s claims history before issuing a policy. Water damage claims are red flags, of course, but homeowners can also set off alarms simply by inquiring about their coverage, without ever filing a claim.
Most insurers research past claims through a shared database called CLUE, which stands for Comprehensive Loss Underwriting Exchange. When you apply for homeowner’s insurance, the insurer will request a CLUE report to determine whether you or the seller have filed any claims during the past five years. Even if you currently own a home and have a squeaky-clean claims history, if you buy a house with multiple claims filed against it, you may not be able to secure insurance coverage.
Unfortunately, you can't order a CLUE report if you are not the homeowner. However, you could always ask the seller to order a copy of the report as a contingency to your offer.
If you are ever denied insurance because of past claims you can request a free copy of your CLUE report. In the event of a dispute with your insurer, you have the right to ask that your account of the events be included in the report. If you are simply curious about your home's history, you can order a copy from ChoicePoint, the company that manages the CLUE database.
It pays to educate yourself about homeowner’s insurance when seeking affordable coverage.
Consider the following:
Learn the rules regarding homeowner’s insurance renewals in your state. Regulators of some states exercise control over when an insurer can refuse to renew your coverage.
Pay for small losses yourself. Insurers take notice of customers submitting frequent small claims.
Think twice before calling your agent or insurance company. Once you call the insurer opens a claims file on you regardless of whether you actually file a claim.
Increase your deductible and consolidate insurers. To reduce your homeowner’s insurance premium, consider raising your deductible. Also, most insurers offer discounts if you insure both your car and home with them.
Examine your credit record. In addition to your past claims history, insurers often use your credit score to determine whether to issue you a policy.
Labels: Loudoun Insurance
Available Discounts Can Lessen Your Auto Insurance Premiums
Personal automobile insurance can be expensive, but did you know that insurance carriers offer discounts that can ease the burden? Ask your insurance agent about the types of discounts available. Keep in mind that not every discount listed below is available in every state or with every carrier:
Defensive Driving Discount – Reduce your risk of accidents by taking a defensive driving class, and many insurers will give you a discount on premiums. These courses usually last from 5 to 6 hours and train you to recognize road hazards and how to react in enough time to prevent accidents. The fee is about $20.00, but successful completion can earn you a 3-year, 10 percent discount on liability, medical payments and collision coverage.
Good Student Discount – Earn good grades in school and your carrier may reward you. That’s because statistics show that good students make better drivers because they are more mature and reliable. Many states allow a 5 to 10 percent discount if your student driver makes good grades, usually an overall "A" or "B" average in high school or college.
Good Driver Discount - Maintain a clean driving record, and you can save money. If a carrier’s risk is lowered, it will pass the savings on to you.
Home/Car Discount – Purchase both your homeowners and automobile insurance from the same carrier, and you may receive a discount of 10 percent or more, which will lower the premiums on both policies.
Multiple Car Discount - Insure two cars with the same carrier, and you may be eligible for a discount on both cars’ coverage.
Model-Related Discounts – Buy a car that has been assigned a high safety/anti-theft rating. Industry agencies rate every car model based on its collision history and the number of injury and theft claims associated with it. The higher the rating, the more probability of insurance premium discounts. Choosing a car with a lower rating can significantly raise a premium because of the higher risk factor.
Protection from Physical Damage/Theft - Choose options that protect your car from physical damage and theft, and you may receive a discount. Many insurers reward consumers who reduce risk by opting for anti-lock brakes, airbags, alarm systems and other security devices.
Low-Mileage Discounts – Use public transportation to commute to work, and your carrier may offer you a discount. That’s because the less time you spend on the road, the less of a possibility there is for an accident.
Does Your Homeowner’s Insurance Cover a Stolen Cell Phone?
You just realized your cell phone has been stolen. Not only are you out the cost of the phone, but more than likely, the thief is placing hundreds of dollars of charges on your phone bill right now.
As people increasingly rely on cell phones, this type of loss is becoming more common. In fact, a recent Better Business Bureau report indicated that an estimated 600,000 cell phones will either be lost or stolen this year. Unfortunately, a homeowner’s policy probably won't be of much help in protecting you in this unfortunate event. Here’s why.
The most popular homeowner’s policy, the HO-3, provides the broadest coverage. It insures you for direct physical loss to all personal property described in Coverage C, as long as the loss was caused by a covered peril and not specifically excluded. The theft of the phone is considered a direct physical loss of property, but not the thief’s subsequent use of the phone. Unlike charges made on a stolen credit card, which have limited homeowner’s insurance coverage via a separate “Additional Coverage” grant, there is no such grant for unauthorized cell phone charges.
Here’s how to protect yourself from cell phone theft and fraudulent charges:
- Keep as close watch on your cell phone as you would your wallet or purse. Be mindful of where your phone is at all times and be careful about who you lend it to.
- Password-protect your phone. Read the user guide that came with your phone to find out how to "lock" your phone or enable the "password" feature to prevent a thief from making unauthorized calls.
- Call your cell phone provider as soon as you realize your phone is missing. Be sure to keep detailed records, including the date and time you called your carrier, the name and ID number of the representative to whom you spoke, and what instructions you were given.
- File a police report. This is an official record of the theft and your carrier may require you to provide a police report number when you report your missing phone.
- Ask your carrier to open an investigation. If your phone company isn’t working to resolve the situation, request an investigation. This should stop collections agencies from taking action, as well as delay the reporting of non-payment of charges to credit bureaus.
- Contact the Federal Communication Commission. The agency will forward your complaint to your service provider and mandate that they respond within 30 days. You can log on to http://www.fcc.gov/cgb/complaints.html to file a report.
- Contact your state attorney general’s office. They handle complaints about cell phone fraud, in addition to disputes about contracts. Find your state attorney general by logging on to http://www.naag.org/ag/full_ag_table.php.
- Contact your state’s public utility commission. You can find your state’s commission by logging on to the National Association of Regulatory Utility Commissioners web site at http://www.naruc.org/displaycommon.cfm?an=15.
FTC Says Credit Scores Are a Valid Risk Predictor for Auto Insurance
A report issued by the Federal Trade Commission (FTC) says that credit scores are an “effective predictor” of risk when underwriting auto insurance. The study titled, Credit-Based Insurance Scores: Impact on Consumers of Automobile Insurance, confirms what industry professionals have always believed, that credit-based insurance scores provide an objective and reliable tool for determining which drivers present a greater risk and should therefore pay higher rates.
Insurance companies have always tried to correlate premium rates as closely as possible to the actual cost of claims. This practice helps insurers stay competitive and keeps them from hemorrhaging money. The majority of consumers also benefit from this correlation because they are not subsidizing people more likely to file claims than themselves.
Credit information has been used for a number of years to help underwriters decide whether or not to accept insurance applications. Developments in information technology have led to the creation of insurance scores, number rankings based on a person’s credit history, which give insurers a far more accurate way to assess the risk of future claims.
Statistically, people with a poor credit history are more likely to file claims. Insurance scores are used to help underwriters differentiate between lower and higher insurance risks, which enables them to charge a premium appropriate for the level of risk assumed.
However, some in the insurance industry oppose this technique because they feel credit scores don’t always present an accurate picture of a person’s credit history. Credit scores don’t reflect the good payment records of consumers who pay their bills in cash. Credit scores may also provide an incorrect image of consumers who normally have good credit, but have been negatively impacted by one-time unexpected events, such as medical emergencies.
Despite these instances, the FTC report says the use of credit-based insurance scores provides benefits for consumers.Evaluating credit scores allows insurance companies to calculate risk with greater accuracy. This enhanced capability may make them more willing to offer insurance to higher-risk consumers for whom they would otherwise not be able to determine an appropriate premium.Using credit scores also may make the process of granting and pricing insurance quicker and cheaper, cost savings that can be passed on to consumers.
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